For the past few weeks, miners on the Bitcoin Network (BTC) have been processing blocks at lower than usual levels of transactions. This indicates that the chain created by Nakamoto is rarely used.
An eloquent example of that trend reported by Cryptootics can be found in block 890466, which contains just seven transactions by Foundry USA Mining Pool on April 1, according to data from the Mempol.space site.
The block matrix with few transactions is not an isolated fact, but it coincides with the broader context in Bitcoin use. In this context, Julio Moreno, director of research at analytics firm Cryptoquant, was declared in X that “the activity of the Bitcoin network is in a bear market.”
Cryptographic activity indexes show bearish trends
The graphic “Bitcoin Network Activity Index” created by Cryptoquant and shared by Moreno in X is A clear decline in activity On-chain Bitcoin From December 2024 to the present (the area is painted red).
The index, which consists of graphs, is built from four metrics that can assess the growth and vitality of the network. The first is the number of active addresses that contain both Total active daily address Like those who send and receive funds, reflecting the number of users interacting with Bitcoin on a particular day.
At the time of this article and according to the encrypted data, Bitcoin has around 1 million active accounts, reflecting the rise compared to March 30th of 800,000 people. However, those numbers have fallen since February 28th. Active accounts exceeded 1.2 million.
The second metric containing the previous graph corresponds to and covers the transaction Daily Total and Block Averageindicates the amount of operations the network is processing. Until April 1st, Bitcoin spoke to 356,000 transactions. Metrics coming in autumn After December 2024:
Third, it is considered the sum of the UTXO (output of non-permeable transactions) present. Number of funds available It acts as a potential fluidity thermometer for use. The statistics are located at 173 million UTXO (blue line in the next image) on April 1, and have also been in the lower trend since December last year, coinciding with the subsequent fall in BTC prices.
Finally, bytes per block are measured as they act as a proxy for the demand for space in the network. How many users are willing to pay To include transactions in a block.
Similar to previous measurements, according to Cryptoquant, this case shows a decline from an average of 1.75 MB in mid-December 2024 to about 1.5 MB at the end of March. This reduction reflects that users are Fewer transactions will be sent or less conflicts Spaces convert to smaller blocks, often with fewer operations.
In this way, the index on Cryptoquant’s first chart shows that all these indicators show a downward trend. Fewer people use Bitcoineither send, receive, or simply keep the funds moving.
What does this fall mean for Bitcoin?
Reduced activity On-chainlike what indicates an encrypted index, It doesn’t necessarily mean a crisis For Bitcoin as a network or active Bitcoin. However, it shows moments with less dynamism.
On the other hand, the price of Bitcoin, which has experienced volatility in recent months, may discourage users from trading frequently, and may be either choosing accumulation strategy or simply choosing another network or asset.
Similarly, fewer transactions and active addresses can be interpreted as indications of Retail CoolingMeanwhile, low demand for space within the block indicates an urgency reduction in moving funds. The latter is illustrated in cases such as block 890466 discovered by Foundry USA. Include just 7 transactions Proof that there was no significant tail of the operation waiting for confirmation to be confirmed.
Plus, low activity On-chain Bitcoin reflected in these metrics can also affect the increased impulse of a place-in-the-narrative. Bitcoin Como One reservoir Valueas a way to exchange.
This perception of comparing Bitcoin to “digital gold” promotes accumulation mentality among users who prefer to maintain immobilized funds in cold wallets and long-term addresses, instead of using them for frequent trading. As a result, networks are less funding, less activity, and more trends in low demand. Investors prioritize long-term ownership About daily use of assets.
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